Question

The Nederlander Organization is a theatrical organization that owns concert venues and Broadway theaters. Nederlander describes itself as a lifestyle company, which puts them in a specific niche with a specific type of customer. The organization engages in promotional activities for various concerts as well as production of Broadway shows. Nederlander Organization has leveraged these relationships with their Audience Rewards program, a type of sales promotion that has allowed them to build strong relationships with customers by enhancing their experience. The unique nature of the industry and smaller size of their target market allow Nederlander to create a valuable experience for customers through personal selling and sales promotion activities. The Audience Rewards is similar to a frequent-flyer program. Nederlander’s sales promotion program strongly benefits smaller venues. The Audience Rewards program also depends on outside relationships with major companies that sponsor the rewards for the program. Nederlander’s target market is an attractive opportunity for large companies. A market dominated by 30- to 59-year-old females with an annual income of approximately $200,000 appeals to their corporate partners because they want to get access to their customers. In addition to the many benefits of this program, sales promotion has provided Nederlander Organization with a competitive advantage over other companies. Questions for Discussion 1. Why do you think more targeted promotional efforts such as personal selling and sales promotion are necessary for Nederlander’s specific target market? 2. How does Nederlander’s Audience Rewards program result in a competitive advantage? 3. Describe how Nederlander’s strong customer relationship management results in increased loyalty to the organization.

Answer 1

1)

Nederlander's has a littler size of the three objective market. The littler size of the business can help the organization to develop and keep up their own association with their clients. Customers look for value added experiences in such industry. The company has to organize various concerts and the success of these concerts depends on the promotional activities carried out by the company.

That is why company needs more targeted promotional efforts such as personal selling and sales promotion. That is the reason CEO of the organization chose to dispatch gathering of people rewards framework where clients get focuses on purchasing tickets which they can recover them and utilize the focuses to get rebates.

2)

Netherlander's gathering of people compensate program brought about an upper hand. The program was propelled to develop individual relations with their clients. The system allowed customers to get points on buying the tickets for their concerts. These points can be used by customers as they can redeem them for some awards or discounted tickets.

The program provided a central platform to all vendors and art. his program helped the organization to tie up with different other universal organizations and it likewise gave them chance to grow new items, for example, Mastercards and Broadway wide gift vouchers. The tie ups of Netherlander's with other companies helped these companies to enjoy the benefit of larger market share and more profits. The relationships with various other companies provided netherlander's a competitive advantage.

3)

Netherlander's has a little market however a solid client relationship administration helped the organization to have an immense market share.CEO knew that in this industry customers always look for good deal. This made the organization to focus on more promotional activities like personal selling and sales promotion. The success of the concert depends on the customers.

That is why the company launched a reward system so that their customers can enjoy the benefits of attending a concert as it allowed them to redeem the points to have discounted tickets or to attend red carpet events. The launch of the reward system made the organization to do business with other companies and this made Netherlander's gain a competitive advantage as well. The solid showcasing and solid client relationship has made an obstruction for different organizations to enter the business.